Almost everyone loves a company that pays strong dividends. Who doesn't like receiving a check every quarter for simply owning a stock--especially if that stock is paying you back 4%, 5% or even 10% of its share price in annual income each year? In a world where 10-year treasuries are yielding 3%-4% it seems hard to go wrong when buying a stock that's yielding significantly above the going rates on fixed-income assets. Unfortunately, the market rarely offers a free lunch.
While high-yield stocks may have a lot of near-term attractiveness, those same high-yields can often signal significant danger ahead. In some cases, it might mean that the company's dividend will stop growing or won't grow as fast as it used to. Worse yet, the company could cut its dividend, reduce the income you receive from owning the stock and drive down the value of the shares that you own.
5% plus yields might seem like an easy opportunity to boost the investment income you receive, but high-yield stocks can just as often be a trap waiting to snare unsuspecting investors. It's not always easy to tell the difference though.
This slideshow highlights 20 high-yield dividend stocks that are paying an unsustainably large percentage of their earnings in the form of a dividend. These companies are all paying out more than 100% of their earnings per share in the form of a dividend, a sign that the advertised high-yield probably won't last.
- Dividend Yield
- 4.26%
- Annual Dividend Payout
- $0.82
- Earnings Per Share
- $0.01
- Payout Ratio
- 8,200.0%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $18.03 (5.2% Downside)
About KeyCorp
KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; commercial leasing, investment management, consumer finance; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses.
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- Dividend Yield
- 11.02%
- Annual Dividend Payout
- $2.96
- Earnings Per Share
- $0.07
- Payout Ratio
- 4,228.6%
- Consensus Rating
- Hold
- Consensus Price Target
- $45.00 (66.7% Upside)
About BCE
BCE Inc, a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers.
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#3 - Gilead Sciences (NASDAQ:GILD)
- Dividend Yield
- 3.48%
- Annual Dividend Payout
- $3.08
- Earnings Per Share
- $0.09
- Payout Ratio
- 3,422.2%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $94.00 (6.1% Upside)
About Gilead Sciences
Gilead Sciences, Inc, a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of COVID-19; and Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis.
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#4 - Estée Lauder Companies (NYSE:EL)
- Dividend Yield
- 4.14%
- Annual Dividend Payout
- $2.64
- Earnings Per Share
- $0.56
- Payout Ratio
- 471.4%
- Consensus Rating
- Hold
- Consensus Price Target
- $98.57 (50.9% Upside)
About Estée Lauder Companies
The Estée Lauder Companies Inc manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as compacts, brushes, and other makeup tools.
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- Dividend Yield
- 3.84%
- Annual Dividend Payout
- $1.70
- Earnings Per Share
- $0.37
- Payout Ratio
- 459.5%
- Consensus Rating
- Hold
- Consensus Price Target
- $45.18 (1.9% Upside)
About UDR
UDR, Inc (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S.
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#6 - Moelis & Company (NYSE:MC)
- Dividend Yield
- 3.21%
- Annual Dividend Payout
- $2.40
- Earnings Per Share
- $0.53
- Payout Ratio
- 452.8%
- Consensus Rating
- Reduce
- Consensus Price Target
- $60.83 (17.1% Downside)
About Moelis & Company
Moelis & Company operates as an investment banking advisory firm. It offers advisory services in the areas of mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters, as well as strategic, capital structure, and private funds advisory.
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#7 - Ternium (NYSE:TX)
- Dividend Yield
- 12.87%
- Annual Dividend Payout
- $1.80
- Earnings Per Share
- $0.40
- Payout Ratio
- 450.0%
- Consensus Rating
- Buy
- Consensus Price Target
- $55.00 (63.9% Upside)
About Ternium
Ternium SA, together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products.
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#8 - Blue Owl Capital (NYSE:OWL)
- Dividend Yield
- 3.19%
- Annual Dividend Payout
- $0.72
- Earnings Per Share
- $0.17
- Payout Ratio
- 423.5%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $22.31 (4.9% Downside)
About Blue Owl Capital
Blue Owl Capital Inc operates as an asset manager in the United States. The company offers permanent capital base solutions that enables it to offer holistic framework of capital solutions to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. It also provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; liquid credit; GP strategic capital products, which offers capital solutions, including GP minority stakes, GP debt financing, and professional sports minority stakes; and real estate products that focuses on acquiring triple net lease real estate by investment grade or creditworthy tenants.
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#9 - Baxter International (NYSE:BAX)
- Dividend Yield
- 3.51%
- Annual Dividend Payout
- $0.68
- Earnings Per Share
- $0.20
- Payout Ratio
- 340.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $40.91 (25.4% Upside)
About Baxter International
Baxter International Inc, through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company operates through four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care. The company offers sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; generic injectable pharmaceuticals; surgical hemostat and sealant products, advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, as well as advanced equipment for the surgical space, including surgical video technologies, precision positioning devices, and other accessories.
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- Dividend Yield
- 7.89%
- Annual Dividend Payout
- $4.11
- Earnings Per Share
- $1.21
- Payout Ratio
- 339.7%
- Consensus Rating
- N/A
About Trend Micro
Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence.
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#11 - Alexandria Real Estate Equities (NYSE:ARE)
- Dividend Yield
- 4.93%
- Annual Dividend Payout
- $5.20
- Earnings Per Share
- $1.64
- Payout Ratio
- 317.1%
- Consensus Rating
- Hold
- Consensus Price Target
- $127.30 (22.0% Upside)
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.
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#12 - Healthcare Trust of America (NYSE:HTA)
- Dividend Yield
- 4.53%
- Annual Dividend Payout
- $1.33
- Earnings Per Share
- $0.42
- Payout Ratio
- 316.7%
- Consensus Rating
- N/A
About Healthcare Trust of America
Healthcare Trust of America, Inc (NYSE: HTA) is the largest dedicated owner and operator of MOBs in the United States, comprising approximately 25.1 million square feet of GLA, with $7.4 billion invested primarily in MOBs. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations.
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#13 - Realty Income (NYSE:O)
- Dividend Yield
- 5.59%
- Annual Dividend Payout
- $3.16
- Earnings Per Share
- $1.05
- Payout Ratio
- 301.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $63.85 (12.2% Upside)
About Realty Income
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust ("REIT"), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients.
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#14 - American Tower (NYSE:AMT)
- Dividend Yield
- 3.33%
- Annual Dividend Payout
- $6.48
- Earnings Per Share
- $2.37
- Payout Ratio
- 273.4%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $235.54 (17.3% Upside)
About American Tower
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 224,000 communications sites and a highly interconnected footprint of U.S. data center facilities.
#15 - Healthpeak Properties (NYSE:DOC)
- Dividend Yield
- 5.75%
- Annual Dividend Payout
- $1.20
- Earnings Per Share
- $0.47
- Payout Ratio
- 255.3%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $22.86 (6.7% Upside)
About Healthpeak Properties
Healthpeak Properties, Inc is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.
#16 - National Fuel Gas (NYSE:NFG)
- Dividend Yield
- 3.41%
- Annual Dividend Payout
- $2.06
- Earnings Per Share
- $0.81
- Payout Ratio
- 254.3%
- Consensus Rating
- Hold
- Consensus Price Target
- $69.00 (11.9% Upside)
About National Fuel Gas
National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil. The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields.
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- Dividend Yield
- 7.6%
- Annual Dividend Payout
- $1.19
- Earnings Per Share
- $0.47
- Payout Ratio
- 253.2%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $26.00 (67.6% Upside)
About TELUS
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products.
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#18 - EnLink Midstream (NYSE:ENLC)
- Dividend Yield
- 3.4%
- Annual Dividend Payout
- $0.53
- Earnings Per Share
- $0.21
- Payout Ratio
- 252.4%
- Consensus Rating
- Hold
- Consensus Price Target
- $15.40 (0.3% Downside)
About EnLink Midstream
EnLink Midstream, LLC provides midstream energy services in the United States. The company operates through Permian, Louisiana, Oklahoma, North Texas, and Corporate segments. It is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, and selling natural gas liquids; and gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, as well as providing brine disposal services.
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#19 - First American Financial (NYSE:FAF)
- Dividend Yield
- 3.32%
- Annual Dividend Payout
- $2.16
- Earnings Per Share
- $0.89
- Payout Ratio
- 242.7%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $72.50 (9.2% Upside)
About First American Financial
First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally.
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#20 - Fibria Celulose (NYSE:FBR)
- Dividend Yield
- 8.19%
- Annual Dividend Payout
- $1.41
- Earnings Per Share
- $0.61
- Payout Ratio
- 231.1%
- Consensus Rating
- N/A
About Fibria Celulose
Fibria Celulose SA produces, sells, and exports short fiber pulp in Brazil and internationally. It manufactures and sells bleached eucalyptus kraft pulp. The company has approximately 1,056,000 hectares of forest base in the states of São Paulo, Minas Gerais, Rio de Janeiro, Espírito Santo, Mato Grosso do Sul, and Bahia.
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